Hot picks and strategies for the week

Top Picks: Kotak Mahindra Bank, Majestic Auto, Gateway Distriparks

My top picks for the week would be Kotak Mahindra Bank ; Majestic Auto is likely to hit Rs 120 levels in about three months, Gateway Distriparks looks very good at current levels, and Hinduja TMT.

Buy Thomas Cook with a Rs 900 medium-term target

Thomas Cook has a very good breakout and this could give it an impetus. The stock has broken Rs 585 level, which is infact a triple top for the stock and my medium-term target would be Rs 900. It's a very strong candidate to outperform the broader markets.

Buy MTNL on declines; Chennai Petroleum is good value pick

MTNL , though a good pick, I would buy the stock on declines; one stock that is available for a song is Chennai Petroleum and it's a pure value-pick at Rs 245 levels. The stock can give a maximum downside of Rs 235 but investors can buy the stock even at current levels. The stock can have an upside upto Rs 280-285 in the near-term.

Zee Telefilms is a contrarian buy

Zee Telefilms is one stock that would surely do very well in the medium-term. With BCCI opening up the tenders anew, it opens new avenues for Zee to bag cricket rights in India and market is abuzz that Zee will bag the rights this time round. This will make Zee an ideal bouquet channel.  

This will add a new source of revenues and higher profitability for the channel and thus attract a horde of investors to the stock. Interestingly, the stock has hit a plateau even as the Sensex has skyrocketed from the 3000 to 9000 levels. Zee can be excellent contrarian's buy for the long-term. 

Software is a sector that stands

Software is a sector that stands out because of the weakening rupee. And we have seen frontline stocks like TCS and Infosys leading the sector this week. Midcap stocks from the IT sector are definitely likely to outperform as they did not appreciate as much in the month of November.

Midcap stocks will do well

As a theme also, midcap stocks will do well because large cap stocks are once again reaching closer to rich valuations and some amount of correction is likely in them at higher levels.